Expense Characteristics

FA – May 2017 – L1 – SA – Q4 – Depreciation Methods and Accounting for Disposals

Highlights the difference between depreciation and other expenses.

Question

The major difference between depreciation and other types of expenses is that it

A. Does not involve any cash outlay
B. Is subject to more precise measurement
C. Can be avoided if the asset is in good condition as when purchased
D. Is not deductible if it will cause a net loss
E. Requires no provision

Answer

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Tags: Cash Outlay, Depreciation, Expense Characteristics
Level: Level 1

Topic: Depreciation Methods and Accounting for Disposals
Series: MAY 2017

Question Tag: Expense Characteristics

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FA – May 2017 – L1 – SA – Q4 – Depreciation Methods and Accounting for Disposals

Highlights the difference between depreciation and other expenses.

FA – May 2017 – L1 – SA – Q4 – Depreciation Methods and Accounting for Disposals

Highlights the difference between depreciation and other expenses.

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FA – May 2017 – L1 – SA – Q4 – Depreciation Methods and Accounting for Disposals

Highlights the difference between depreciation and other expenses.

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FA – May 2017 – L1 – SA – Q4 – Depreciation Methods and Accounting for Disposals

Highlights the difference between depreciation and other expenses.

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